Phoenix Rover bosses criticised over mean compensation

The former directors of MG Rover have been criticised for offering workers who lost their jobs after the collapse of the car maker just £3.28 each.

All the “Phoenix Four” directors have offered £5,000 of their own money, instead of the assets worth up to £50m that they originally pledged, according to newspaper reports.

The directors, led by chairman John Towers, became notorious in the last few years of MG Rover for taking more than £40 million from the loss-making company in pay and pensions.

When the company collapsed in April they promised to donate all the assets of their holding company, which include a stately home worth several million pounds.

But the directors have come under fire from business leaders and politicians after reneging on that pledge.

Sir Digby Jones, director-general of the CBI, told The Times: “The directors have a clear moral obligation to those who worked at Longbridge and have not found new jobs or training, especially in the light of the amount of money the Phoenix Four have received over the five years they controlled Rover.

“The present situation does the reputation of business no good at all.”

David Willetts, shadow Secretary for Trade and Industry, added: “Originally the directors promised that all money would go to the employees.

“Now it is down to only £5,000 from each director. Rover employees must be very disappointment that original promises have not been kept.”

 

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